BDPA Cincinnati chapter explored Crowdfunding at its October 2014 program meeting. Crowdfunding is one of the fastest growing ways for entrepreneurs to raise money to kick-start businesses and projects. One of the most pressing questions for any new business is how it will be funded! Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture. Crowdfunding makes use of the easy accessibility of vast networks of friends, family and colleagues through social media websites like Facebook, Twitter, Google+, and LinkedIn to get the word out about a new business and attract investors. We looked at one of the most attractive options – Crowdfunding - and learned the ins-and-outs from a local expert. Our guest speaker on this topic was Bill Huston, co-founder of My Crowd Rocks, a crowdfunding and social media consultancy. As the Chief Marketing Officer and Digital Strategist, Bill heads the lead generation and branding strategy including blogging, search engine optimization, video marketing, and social media. Bill has over 15 years’ experience in leadership, marketing, and strategic planning, and the team he has assembled has over 20 years of experience and a demonstrated desire to improve the global business community through crowdfunding and digital communication.

1. Crowdfunding as a Pathway to Marketing and Funding Your Tech Startup

2. 1. The Statute of Liberty was the first American
Crowdfunding Project
2. Joseph Pulitzer appealed to the American people
using his Newspaper “The World”
3. Raised over $100K in 5 months with over 120K
donations of less than a dollar

3. Crowdsourcing-The practice of obtaining needed services, ideas, or
content by soliciting contributions from a large group of people.
Social media is an essential component of crowdsourcing that allows
organizations to reach a wider audience faster, cheaper and more
efficiently than ever before.

4. Crowdfunding is an internet-driven means of raising money
from the mass market by receiving small amounts of money from
a large group of people, to fund a project or business
Crowdfunding was a response to the “Great Recession”

5. • Crowd Funding was initially seen by
many as a concept unsuitable for
use in the business world.
• Despite this skepticism, the
tightening of banks’ lending criteria
and unavailability of commercial
finance has transformed
crowdfunding into $5 Billion global
industry

7. 1. Crowdfunding has spread around the globe and reaches over 160
countries worldwide and more than 90% of the world's online
population.
2. Global crowdfunding produces 500 new projects per day, and between
18,000 & 22,000 projects are open at any one time
3. A new crowdfunding project is created every three minutes globally

8. City Cincy Indy Lou Col
NEW PROJECTS EACH DAY 1 1 <1 1
PROJECTS CREATED IN Q2 92 101 30 101
ENDED FULLY FUNDED 33% 17% 26% 21%
PEOPLE BACKED EACH OF
THESE
59 76 32 152
WAS THE AVERAGE AMOUNT
RAISED
$11, 668 $64,553 $3,293 $21,577
THE TOTAL RAISED IN THE
PERIOD
$366,673 $1,010,505 $21,362 $561,362

9. SUCCESSFUL
PROJECTS
AVERAGE BACKERS TOTAL FUNDS RAISED
5,729 KICKSTARTER 251 KICKSTARTER $125M KICKSTARTER
2,649 INDIEGOGO 152 INDIEGOGO $49M INDIEGOGO
572 FUNDRAZR 136 CROWDCUBE $12M CROWDCUBE
91 CROWDFUNDER UK 101 ROCKETHUB $1M FUNDRAZR /
ROCKETHUB
60 ROCKETHUB 67 CROWDFUNDER UK $763K
CROWDFUNDER UK

10. 1. Pirate3D Inc set out to bring affordable 3D Printing
to the home and raised $1.4M of its $100K goal
on Kickstarter
2. Kreyos raised $1.5 million from a $100,000 goal.
3. Tile a location tracking device has garnered $2.6
million to date and almost 50,000 backers
4. The Ubuntu Edge raised $12 million, but failed to
meet is lofty goal of $32 million

11. 1. Market Research
2. Market Validation
3. Proof of Concept
4. Build an engaged community of customers
5. Build brand advocates that spread the word about
your brand
6. Product development feedback
7. Testimonials and case studies
8. Pre- Orders for your product and service

12. 1. Clearly define your product and your goals
2. Tell a compelling story about what you can do for
others
3. Create a powerful video it is crucial
4. Brand development is a key component
5. Produce powerful & persuasive copywriting
6. Implement targeted social media management &
Pr campaigns

13. 1. Too little time devoted to planning
and promotion
2. Project owner did not successfully
engage their personal network
3. Project owner did not build press
relationships
4. Campaign funding threshold set
too high
5. No video or poor video included

15. •Crowdfunding is estimated to be a $300 Billion
global industry by 2025
•Crowdfunding will become a global alternative
for SMB and Startup finance
•73% of Tech Startups that successfully
crowdfund for $50K or more go on to receive
later round funding
•Crowdfunding is a great route for alternative
financing for Black Tech Startups if we can grow
and mobilize the needed social capital

16. Website
Mycrowdrocks.com
Bill@mycrowdrocks.com
Twitter
@BillHuston1
@MyCrowdRocks
Facebook
Facebook.com/MyCrowdRocks